Moresco Corp, a specialty lubricant manufacturer, has initiated the construction of a new plant in Haining city, Zhejiang province, Eastern China, with an expected completion date by the end of November, as stated in an announcement on April 13.
The company was compelled to relocate from its current site in Wuxi, Jiangsu province, by the end of the year due to government land re-development plans focused on urbanization and commercialization. The plant, which began construction in February, specializes in producing lubricants and hot melt adhesives primarily for the automotive sector.
Moresco Corp announced a notable 16% increase in its specialty lubricant sales, reaching ¥15.1 billion (U.S. $112.4 million) during its fiscal year from March 1, 2022, to Feb. 28, 2023. The company attributed this growth to the recovery and expansion of Southeast Asian markets, which compensated for a decline in domestic motor vehicle sales.
Noteworthy progress was observed in various product segments, including vacuum pump oil, hydraulic fluids, cutting fluids, forging lubricants, and their largest functional fluids market, die-casting fluids. However, sales of synthetic lubricants experienced a 13.7% decline, totaling ¥1.7 billion compared to the previous year. On the other hand, sales of sulfonates, utilized as an additive for metalworking fluids, demonstrated a positive trend, rising by 9% to reach ¥4 billion.
According to Moresco’s projections, alternative vehicles such as electric vehicles (EVs), hybrid electric vehicles (HEVs), and fuel-cell vehicles will constitute 56% of the global motor vehicle market by 2035, while internal combustion engine (ICE) vehicles will decrease to 44%. Moresco CEO, Morozumi Motohisa, stated in a video conference to investors in November that although ICEs are anticipated to hold over 50% market share in 2030, the growth of EVs is expected to continue steadily. He emphasized the growing market for new energy cars in China and Europe.
Moresco forecasts Europe to lead with a 41% share of new energy motor vehicles, followed by China at 40% and North America at 16% in 2022. Globally, the total number of new energy motor vehicles is projected to reach 5.4 million units this year, nearly double to 10.6 million units in 2025, and triple to 36 million units in the next decade.